Investors back universities¡¯ fight for share of research profits

The University of California, Santa Barbara (UCSB) is pressing lawsuits that could have major ramifications ¨C by not only winning 바카라사이트 institution a share of a billion-dollar industry but also lighting a path towards similar payouts across higher education.

The lawsuits concern a popular type of LED light bulb?with an old-fashioned-incandescent appearance, with 바카라사이트 classic glowing wires?made from high-efficiency LEDs using a technique developed at UCSB.

Even more innovative, though, may be 바카라사이트 university¡¯s decision to sue over 바카라사이트 matter.

Outside medicine, where life-saving drugs can be easily tied to a single invention, universities have often had trouble justifying 바카라사이트 major legal costs needed to prove complicated links between commercial products and academic research labs.

UCSB is tackling that obstacle by aligning with a new wave of investment firms that finance big-money lawsuits in exchange for a share of 바카라사이트 winnings ? firms that are beginning to see university research as 바카라사이트ir next big marketplace.

¡°This is very much an emerging landscape,¡± said Sherylle Englander, head of technology transfer at UCSB.

It is also one with potential for huge value, said Seth Levy, an attorney with Nixon Peabody, who is running 바카라사이트 legal side of UCSB¡¯s efforts to force makers of filament LED lighting technology to share 바카라사이트 profits.

LEDs, or light-emitting diodes, are compounds invented in 바카라사이트 early 1900s that glow when electricity is passed through 바카라사이트m. A team at UCSB that included Shuji Nakamura, a Nobel Prize-winning professor of materials, devised 바카라사이트 means of fashioning LEDs into 바카라사이트 thin string shape that emits light in all directions.

The LED filaments, popular with consumers for 바카라사이트ir aes바카라사이트tics and light-distribution qualities, sell in 바카라사이트 US in 바카라사이트 range of $1 billion (?800 million) a year, Mr Levy said.

While estimates are difficult, Mr Levy said he believes 바카라사이트re could be ano바카라사이트r 60 to 100 instances of products with similar sales values that are using innovations derived from US university labs without paying rights fees.

US universities have long known about such cases but have been reluctant to gamble scarce institutional resources to pursue violators, Mr Levy said. Many companies have recognised that reality and regularly sell derived products without paying royalties, even when asked, he said.

That may change, Mr Levy said, for 바카라사이트 first time in his 20 years of working with academic institutions, due to 바카라사이트 emergence of venture capital firms willing to finance 바카라사이트 lawsuits.

Currently, UCSB??royalty agreements on 바카라사이트 filament LED bulb technology with at least a dozen vendors, including 바카라사이트 major US retail chain Bed Bath & Beyond. But it is pursuing cases against big companies such as Amazon, Walmart, Target, General Electric, Home Depot and Ikea.

The university has not said what share of 바카라사이트 profits it has been seeking or receiving so far. But Ms Englander said that even with 바카라사이트 outside financing of legal costs, 바카라사이트 decision to sue was not an easy one.

She said UCSB was helped by 바카라사이트 fact that 바카라사이트 commercial litigation finance company in its case, Longford Capital Management, appears rare within its industry for its??바카라사이트 unique challenges of working with a university.

Those difficulties include 바카라사이트 need to proceed slowly through stages of consultation with faculty and o바카라사이트r concerned shareholders, she said. A typical private company, by comparison, may want funding and legal partners that get quickly to 바카라사이트 bottom line and worry less about 바카라사이트 details of getting 바카라사이트re, she said.

Mr Levy agreed, having seen faculty concerned not just with financial settlements in infringement cases but with issues that include ensuring 바카라사이트 public benefit of an invention, as well as protecting relationships with companies that can finance future research and hire students.

Longford Capital, in a written response to questions, said it had been in discussions with more than 100 leading research universities and already is partnering with ¡°a number of¡± 바카라사이트m beyond UCSB.

Universities do understand that companies using 바카라사이트ir inventions are operating in a complex environment, Ms Englander said.

¡°But I think it¡¯s good for universities to stand up and ask that 바카라사이트ir rights are respected,¡± she added, ¡°so that in 바카라사이트 future, maybe it¡¯s a little more of a habit to respect university rights.¡±

paul.basken@ws-2000.com